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Arbitration
Texas: Arbitration provision did not confer personal jurisdiction
March 2, 2017
In Guam Industrial Services, Inc. v. Dresser-Rand Co., the First District Court of Appeals consdiered an accelerated interlocutory appeal from an order denying GIS's special appearance. Dresser-Rand and GIS had a contract for repair and restoration work, with Dresser-Rand suing GIS in district court. Dresser-Rand contended that the trial court had jurisdiction because the arbitration provision in the contract operated as a forum-selection clause where GIS consented to personal jurisdiction in Houston....
March 2, 2017
In Guam Industrial Services, Inc. v. Dresser-Rand Co., the First District Court of Appeals consdiered an accelerated interlocutory appeal from an order denying GIS's special appearance. Dresser-Rand and GIS had a contract for repair and restoration work, with Dresser-Rand suing GIS in district court. Dresser-Rand contended that the trial court had jurisdiction because the arbitration provision in the contract operated as a forum-selection clause where GIS consented to personal jurisdiction in Houston....
Fifth Circuit Affirms Order Denying Arbitration in Ponzi Scheme Case
March 1, 2017
The United States Court of Appeals for the Fifth Circuit has affirmed a district court’s order denying a motion to compel arbitration that was filed by a group of former Ponzi scheme employees. In Janvey v. Alguire, et al., No. 14-10857, Cons. w/Nos. 14-10945, 14-11014, 14-11093, (5th Cir. January 31, 2017), R. Allen Stanford created a massive Ponzi scheme using a large network of interconnected companies and a bank that were collectively known as the Stanford Group. Over the course of 10 years,...
March 1, 2017
The United States Court of Appeals for the Fifth Circuit has affirmed a district court’s order denying a motion to compel arbitration that was filed by a group of former Ponzi scheme employees. In Janvey v. Alguire, et al., No. 14-10857, Cons. w/Nos. 14-10945, 14-11014, 14-11093, (5th Cir. January 31, 2017), R. Allen Stanford created a massive Ponzi scheme using a large network of interconnected companies and a bank that were collectively known as the Stanford Group. Over the course of 10 years,...
Yes We Can: The Door Opens in the Second Circuit to Discovery in Aid of International Commercial Arbitration
March 1, 2017
A Federal court in New York recently opened the door there for U.S.-style discovery of evidence in aid of foreign or international commercial arbitrations, in accordance with a unique American statute – 28 United States Code (“U.S.C.”) § 1782. When 28 U.S.C. § 1782 was enacted in 1948 (and amended slightly in 1949), it was intended to set an example for international judicial cooperation in a world where international trade was recovering from the effects of World War II and the United...
March 1, 2017
A Federal court in New York recently opened the door there for U.S.-style discovery of evidence in aid of foreign or international commercial arbitrations, in accordance with a unique American statute – 28 United States Code (“U.S.C.”) § 1782. When 28 U.S.C. § 1782 was enacted in 1948 (and amended slightly in 1949), it was intended to set an example for international judicial cooperation in a world where international trade was recovering from the effects of World War II and the United...
NLRB Directs Regional Offices to Informally Settle Pending Cases Involving Class Waivers in an Employer’s Arbitration Agreement
February 28, 2017
Last month, the National Labor Relations Board (“NLRB”) issued a memo directing the agency’s regional offices to informally...
February 28, 2017
Last month, the National Labor Relations Board (“NLRB”) issued a memo directing the agency’s regional offices to informally...
SCOTX Refuses to Reconsider Patent Company’s Request to Vacate Arbitrator’s $3 Million Legal Fees Award
February 28, 2017
The Supreme Court of Texas has once again declined to consider a company’s request to vacate an arbitrator’s award in a legal fees dispute. In Parallel Networks, Inc. v. Jenner & Block, LLP, No. 16-0080, Jenner & Block was retained to represent a patent-holding company in a patent enforcement action that was filed against software giant Oracle. The contingent fee relationship, however, did not continue through to the conclusion of the case. After losing a motion for summary judgment,...
February 28, 2017
The Supreme Court of Texas has once again declined to consider a company’s request to vacate an arbitrator’s award in a legal fees dispute. In Parallel Networks, Inc. v. Jenner & Block, LLP, No. 16-0080, Jenner & Block was retained to represent a patent-holding company in a patent enforcement action that was filed against software giant Oracle. The contingent fee relationship, however, did not continue through to the conclusion of the case. After losing a motion for summary judgment,...
Supreme Court Delays Oral Arguments Regarding Employment ‘Class Arbitration’ Waivers
February 28, 2017
On February 8, 2017, the Supreme Court announced that it would delay until its October 2017 term oral arguments in the consolidated cases concerning the enforceability of class arbitration waivers in employment agreements. (This updates our Blogpost dated Jan. 31, 2017.) Many anticipate that Judge Gorsuch will have been confirmed by the Senate by then, which likely explains the Supreme Court’s decision to delay oral argument. Because the Court granted certiorari based upon a Circuit...
February 28, 2017
On February 8, 2017, the Supreme Court announced that it would delay until its October 2017 term oral arguments in the consolidated cases concerning the enforceability of class arbitration waivers in employment agreements. (This updates our Blogpost dated Jan. 31, 2017.) Many anticipate that Judge Gorsuch will have been confirmed by the Senate by then, which likely explains the Supreme Court’s decision to delay oral argument. Because the Court granted certiorari based upon a Circuit...
Dallas COA Orders AdvoCare Employment Dispute to Arbitration
February 27, 2017
Texas’ Fifth District Court of Appeals in Dallas has ordered a former AdvoCare board member to arbitrate his claims against the company. In AdvoCare GP, LLC, et al. v. Heath, No. 05-16-00409-CV (Tex.-App.—Dallas, Jan. 5, 2017), Richard Heath was hired to act as a board member for a nutrition company, AdvoCare, in June 2015. As part of the hiring process, Heath was required to sign a non-disclosure agreement that included a binding arbitration clause. A little more than one month later,...
February 27, 2017
Texas’ Fifth District Court of Appeals in Dallas has ordered a former AdvoCare board member to arbitrate his claims against the company. In AdvoCare GP, LLC, et al. v. Heath, No. 05-16-00409-CV (Tex.-App.—Dallas, Jan. 5, 2017), Richard Heath was hired to act as a board member for a nutrition company, AdvoCare, in June 2015. As part of the hiring process, Heath was required to sign a non-disclosure agreement that included a binding arbitration clause. A little more than one month later,...
Employers Hold Their Collective Breath on the Enforceability of “Class Action” Waivers in Arbitration Agreements
February 27, 2017
The Supreme Court is currently set to answer the question of whether employees must be permitted, if they choose, to pursue relief collectively in an arbitration proceeding. Is that “concerted activity” that is protected by the National Labor Relations Act, and does that statutory provision supervene the provisions of the Federal Arbitration Act and the right to contract freely? And specifically, is a waiver of class actions in an arbitration clause in an employment agreement enforceable? (That...
February 27, 2017
The Supreme Court is currently set to answer the question of whether employees must be permitted, if they choose, to pursue relief collectively in an arbitration proceeding. Is that “concerted activity” that is protected by the National Labor Relations Act, and does that statutory provision supervene the provisions of the Federal Arbitration Act and the right to contract freely? And specifically, is a waiver of class actions in an arbitration clause in an employment agreement enforceable? (That...
Legal Malpractice Case Involving Labor Arbitration
February 24, 2017
I do not usually comment on tort cases. However, I recently came across Westchester Hills Gold Club v. Panken, 2017 N.Y. Slip Op. 30045(U) (New York Co. Jan. 10, 2017), which many readers may find of interest. Download Westchester Hills v. Panken NY County 2017 This is one of a rare set of legal malpractice cases that arose in the context of a labor arbitration. In this decision, the court refused to dismiss a legal malpractice case involving advice given by management lawyers in both a disciplinary...
February 24, 2017
I do not usually comment on tort cases. However, I recently came across Westchester Hills Gold Club v. Panken, 2017 N.Y. Slip Op. 30045(U) (New York Co. Jan. 10, 2017), which many readers may find of interest. Download Westchester Hills v. Panken NY County 2017 This is one of a rare set of legal malpractice cases that arose in the context of a labor arbitration. In this decision, the court refused to dismiss a legal malpractice case involving advice given by management lawyers in both a disciplinary...
UK Law Seeks to Send Libel Claims Against Newspapers to Arbitration
February 24, 2017
A public consultation regarding Section 40 of the United Kingdom’s Crime and Courts Act of 2013 was completed last week. The highly contentious law was created in response to a legal inquiry that recommended judicial and other legal remedies should be made more readily available to members of the general public. Under Section 40, low-cost arbitration proceedings would be offered to libel claimants through a government-approved press regulator such as IMPRESS or via the Independent Press Standards...
February 24, 2017
A public consultation regarding Section 40 of the United Kingdom’s Crime and Courts Act of 2013 was completed last week. The highly contentious law was created in response to a legal inquiry that recommended judicial and other legal remedies should be made more readily available to members of the general public. Under Section 40, low-cost arbitration proceedings would be offered to libel claimants through a government-approved press regulator such as IMPRESS or via the Independent Press Standards...
